Exam Questions Chapter 23 Marketing-Mix Measures - Marketing Research 13e Complete Test Bank by V. Kumar. DOCX document preview.
Test Bank
CHAPTER 23 Marketing-Mix Measures
True-False
1. Need research is concerned with finding out how latent consumer
needs can be aroused or how new needs can be created.
2. ABC Incorporated feels that there is a need for a new kind of vacuum
cleaner in the market. To generate new product concepts, they have
decided to invite twenty to thirty consumers to discuss the problems
associated with the product-use situation. ABC is using benefit
structure analysis to generate new product concepts.
3. All new product concepts are generated or identified as a result of
uncovering unsatisfied needs or unsolved problems.
4. To test a new product concept, the researcher must obtain reactions
from prospective customers.
5. Merging several concept alternatives into one test is inefficient,
since it confuses respondents and results in inconclusive
comparisons.
6. In most cases, the dominant purpose of the concept test is
go/no-go decision based upon intention-to-buy response.
7. It is generally expected that a concept test will prove that
concept is sound or faulty or will demonstrate definitively how it
should be altered.
8. The results of a product test are potentially more valid and
reliable than those obtained in a concept testing situation, and for
this reason an organization can justify a more complete and
elaborate test.
9. Test markets can be monitored to track competitive reactions and
their impact on the market response.
10. Strong evidence that a product will be successful should exist
before a test market is attempted.
11. Fast-Buck Incorporated manufactures spin-off products in connection
with popular events (e.g., the Pope's visit, a hit movie). Their
major product is T-shirts. To ensure good sales and consumer
acceptance, Fast-Buck should conduct test markets before they launch
each of their products nationally.
12. When selecting areas for test markets, efforts should be made to
test market in the minimum number of areas necessary to satisfy
representation and validity requirements.
13. ABC Incorporated is test marketing a product in some midwest cities.
Salespeople in that area have stepped up their sales effort to
ensure the maximum possible sales. The results of the test market
can reliably be projected to the entire midwest region.
14. In selecting test cities, a researcher should consider the degree to
which a city is isolated from outside media.
15. The disadvantage of store audit data in providing accurate sales
figures is that it is sensitive to inventory fluctuations.
16. A pre-emptive roll-out would be an appropriate alternative if there
is considerable uncertainty about a product's chances of success.
17. The laboratory test market includes a simulated store where
respondents who have been exposed to advertising are asked to make
purchases.
18. In a laboratory test, market repeat purchase is estimated by asking
people after they try the new brand if they want to repurchase it.
19. In comparison to test markets, laboratory test markets are
relatively expensive but they are faster and more variables can be
tested.
20. The critical assumption of ASSESSOR is that preference data and purchase
and repurchase decisions are valid predictors of what would actually happen
in the marketplace
21. A CDSM (controlled-distribution scanner market) provides no test of
a new product's ability to gain distribution.
22. A CDSM (controlled-distribution scanner market) costs about the same
as a full test market but provides much more control and the
flexibility to do more experimenting.
23. The most accurate way to project trial-and-repeat purchase in a test
market is by using panel data where the purchase and repurchase
decisions of individual consumers can be monitored.
24. Estimates of market share are generated by multiplying the trial
rate projection by the repeat rate projection.
25. The laboratory test market for automobiles includes a simulated deal
visit where a respondent interacted with a salesperson.
26. A forecast by geographic area might prove useful in warehouse
stocking decisions or in evaluating regional forecasts.
27. In a linear or straight-line trend projection model, growth is
assumed to be at a constant percentage rate.
28. In the Gaber and Grainer method of pricing research, a buy response
curve of different prices with the corresponding number of
affirmative customer purchase intentions is produced.
29. In a profit oriented pricing strategy, the objective is to generate
as much profit as possible in the current period.
30. The information requirements for share oriented and profit oriented
strategies are the same.
31. If a firm discounts its price in the other markets below its average
cost, then it is said to follow a second market discounting
strategy.
32. When consumers in the market are willing to pay more for a product
despite lack of knowledge regarding the product quality, then price
signaling cannot be used.
33. Price bundling is a viable pricing option for non-substitutable,
perishable kinds of products.
34. When a car manufacturer sells cars at a lower price and prices the
spare parts higher, it is said to follow complementary pricing
strategy.
35. The result of the benefit structure analysis approach is the identification
of benefits sought that current product do not deliver
36. Consumer generated media refers to anything created by a citizen marketer,
that is posted on the internet and spread by social media
37. The Starch noted score is the percentage of respondents who claim to
have seen the ad.
41. In DAR, a viewer is not recorded as recalled the ad unless he or she
can recall something specific about it such as the plot or sales
message.
42. DAR would not be classified as an "on-air" test.
43. Sell-in test markets are cities in which the product is sold just as it would
be in a national launch.
45. In the McCollum/Speilman test, the pre- and post-preference measure
is different for different product classes.
46. In the McCollum/Speilman test, the A/C (Awareness/Communication)
measure is a better predictor of campaign success than the AS
(Attitude Shift) measure.
48. The forced-exposure, brand-preference change test measures the
change in brand preference after watching an advertisement in a theater.
49. In the ASI Apex test, the before-exposure brand preference measure
is different from the after-exposure brand preference measure.
52. In the Behavior Scan Split-Cable testing, for each member of a panel
of 3,000 people in each test town, each supermarket purchase is
known, in addition to what channel their TV sets were turned to at all times.
53. Split-cable is the most valid copy test method and is thus the most
frequently used test.
54. A test of a commercial mock-up will always be less useful than
test of a finished commercial.
55. The more natural the exposure setting, the more valid the copy test
will be.
56. Repeated applications of a copy test such as McCollum/Speilman would
be termed a tracking study.
57. Open-ended reactions of commercial viewers can uncover unintended
associations.
58. Eye movement machines are used to measure ad recall.
59. Physiological measures such as GSR are used to measure emotional
response.
60. Continuous measures of liking of commercials are provided by the ASI
theater test.
61. Advertisers are more likely to run reduced level budget split-cable
tests than increased levels because of the potential to save money.
62. A serious problem in field experimentation is the willingness of
competitors to deliberately distort the test with a special
promotion or other device.
64. In the through-the-book method, a respondent is asked whether he or
she looked at a copy within the past week of a weekly publication.
65. Time does better with the through-the-book approach than Newsweek
because it tends to get more serious, thorough readership.
66. Television audience size is estimated by a panel of homes that
agrees to be monitored by a GSR measure.
67. A major problem with the audimeter is that it does not provide
information as to who is viewing the set.
68. The center of gravity method of simulation can be used for locating
a single warehouse or retail site.
69. Skimming pricing is a strategy based on the concept that average unit
production costs continue to go down as cumulative output increases.
70. The location allocation model can be used to allocate demand to
each potential site/store design combination.
71. The analogous location method involves generating a relationship
between store turnover and population characteristics.
72. Total Quality Management is a business philosophy that tends to use
quality improvement as a competitive advantage.
73. Competitive benchmarking is comparing the company's processes,
practices, and products against the world's best companies,
including those from other industries.
- Total Quality Management is restricted to the quality assurance and
quality control departments in an organization.
Multiple Choice
1. Which of the following lists all the stages of the new product research process?
a. Generation of new product concepts, evaluation and development of
actual products, testing the marketing program.
b. Generation of new product concepts, development and evaluation of
new product concepts, development and evaluation of actual
products, testing the marketing program.
c. Development and evaluation of new product concepts, development
and evaluation of actual products, testing the marketing program,
launching the product nationally.
d. Generation of new product concepts, evaluation and development of
new product concepts, evaluation and development of actual
products, launching the product nationally after a test market.
e. None of the above.
2. Which of the following is not always a required stage in the new
product research process?
a. Generation of new product concepts
b. Evaluation and development of new product concepts
c. Evaluation and development of actual products
d. Test marketing the newly developed product
e. All of these are required stages
3. A major tennis manufacturer, after analysis of life style and demographic data,
believes that by 1996, 60 percent of the women in America will be actively involved in sports. It has, therefore, started to develop a whole new line of sports equipment for women. The tennis manufacturer has identified a new need by
a. using perceptual maps.
b. studying social and environmental trends.
c. benefit structure analysis.
d. analysis of relevant portions of consumer diaries.
e. conducting focus group interviews.
4. XYZ Incorporated is in the process of developing a new product. They
currently have a verbal description and a rough idea of the brand name, packaging, and advertising approach. The next stage in the process would be
a. generation of a tangible product concept.
b. evaluation and development of the new product concept.
c. evaluation and development of the actual product.
d. pilot production and test marketing.
e. test marketing.
5. Try-Harder Incorporated is in the process of developing a new
product. The research questions which they are trying to answer are:
(a) are there any major flaws in our concept, and (b) is there
enough interest to warrant further development? Try-Harder is in
a. the concept generation stage.
b. the concept evaluation and development stage.
c. the evaluation and development of the actual product.
d. the production "debugging" stage.
e. none of the above.
6. It is felt that exposing people to a concept is necessary in the
evaluation and development stage. Which of the following is not one
of the important research questions that need to be answered at this stage?
a. How should the concepts be exposed?
b. To whom should the concepts be exposed?
c. What level of sales will we need to break even?
d. To what are the new concepts compared?
e. All of these are important research questions that need to be
answered at this stage.
7. XYZ Incorporated has developed a concept for a new kind of lathe
machine. The improvement is a highly technical one, and although the
operation of the lathe will remain as it is now, its reliability and
energy consumption will improve. To test the concept, it should be exposed to
1. the production engineers of potential industrial buyers.
2. the quality control managers of potential industrial buyers.
3. workers on the shop floor, since they will be using the new lathe.
a. 1
b. 2
c. 3
d. 1 and 2
e. 1, 2, and 3
8. Hot 'n Serve Corporation has developed a new flavor of powdered
soup. They are now giving free samples of the soup to every tenth
customer who enters the local shopping mall. Those who get a packet
of soup are asked to mail in their assessment of the soup by using
an enclosed postage-paid card. Hot 'n Serve is
1. in the product evaluation and development stage.
2. employing the use testing method to assess their new product.
3. in the concept development stage.
a. 1
b. 2
c. 3
d. 1 and 2
e. 2 and 3
9. Which of the following is a problem with the use test method of
evaluating a new product?
a. Respondents may not use the product correctly, resulting in negative opinions.
b. Respondents may give distorted impressions since they were given
free samples and are part of a test.
c. The decision environment of an actual purchase usually cannot be
replicated, resulting in misleading results.
d. Repeat buying over a period of time usually cannot be assessed.
e. All of these are potential problems.
10. Which of the following statements about ASSESSOR is true?
a. It provides results faster and less expensively than a test market.
b. It offers a good deal of flexibility in the selection of the
marketing variables to be studied.
c. It assumes that preference data and purchase and repurchase
decisions are valid predictors of what would actually happen in
the marketplace.
d. It is a laboratory test market method.
e. All of these are true.
11. Which of the following is not true of test marketing?
a. It improves a manager's knowledge of potential product sales.
b. It allows companies to pretest alternative marketing plans.
c. Test marketing is a must for all products in today's competitive environment.
d. Companies may discover product faults that escaped notice in the
product development stage.
e. The results of test marketing may be distorted by improper
methodology.
12. Parker Foods has just developed a new product. What factors should
Parker Foods consider in deciding whether to use a test market for the product?
a. How disruptive actions by competitors might be to the completion
of a valid and reliable test.
b. How easily the new product could be copied by competitors.
c. How expensive a test market would be compared to immediate commercialization.
d. All of these.
e. None of the above.
13. Which of the following are possible measurements for evaluating
consumer product test markets?
a. Warehouse withdrawals
b. Store audits
c. Shipments
d. Trial purchase
e. All of these
14. If a company decides to price its products at a point at which the
profits are the greatest until the changes in the market conditions
or supply costs dictate a price change, then the company follows
a. share oriented strategy.
b. profit oriented strategy.
c. product oriented strategy.
d. market oriented strategy.
e. none of the above.
15. When a company produces an inferior product and sells it at the same
price as the better quality product of another firm, in the belief
that consumers will equate the inferior product with high quality,
then the company follows a _________ pricing strategy.
a. price signaling
b. second market discounting
c. premium
d. penetration
e. random discounting
16. When a computer manufacturer sells its products with all the
available options, it is said to follow a(n)
a. complementary pricing strategy.
b. price bundling strategy.
c. options pricing strategy.
d. substitution pricing strategy.
e. none of the above.
17. Which of the following is not a problem associated with Use Testing?
- Respondents may fabricate opinion without having ever used the product
- The free sample may distort opinions
- Respondents may not be aware of the product benefits
- Realistic store situations may cause buyers to be favorable to other brands
18. A desirable characteristic for a test city would be
- high average household income
- large percentage of double income families
- representative of the markets targeted
- higher number of working women
19. Which of the following research methods provides a test of recognition?
a. Burke DAR
b. Starch
c. McCollum/Speilman
d. Buy Test
e. Mapes & Ross
20. Which of the following research methods provides a test of purchase behavior?
a. Burke DAR
b. Starch
c. McCollum/Speilman
d. Behavior Scan
e. Mapes & Ross
21. Which of the following research methods provides a test of brand preference?
a. Burke DAR
b. Starch
c. McCollum/Speilman
d. Bruzzone
e. None of the above
22. Which of the following research methods provides a test of recall?
a. Burke DAR
b. McCollum/Speilman
c. Mapes & Ross
d. Two of these
e. All of these
23. A copy test will be more valid if
a. the exposure is at home rather than in a theater.
b. the commercial is embedded in a program instead of a mock-up.
c. a finished commercial is used instead of a mock-up.
d. two of these.
e. all of these.
24. Which of the following techniques can be helpful in making the budget decision?
a. Tracking studies
b. Field experimentation
c. Split-cable testing
d. Two of these
e. All of these
25. When respondents are asked the number of issues out of the last four they personally read
or looked at, which print audience measurement technique is being used?
a. Recent-read
b. Through-the-book
c. Reading-habit
d. Issue-reading
e. None of the above
26. The diary panel, used to provide information about television
viewing about individuals in a household, suffers from the following problem:
a. People may fill it out inaccurately.
b. The cooperation rates among younger people is relatively low.
c. It is more inaccurate for prime time shows.
d. Two of these.
e. All of these.
27. Which of the following is a problem with the use test method of
evaluating a new product?
a. Respondents may not use the product correctly, resulting in negative opinions.
b. Respondents may give distorted impressions since they were given
free samples and are part of a test.
c. The decision environment of an actual purchase usually cannot be
replicated, resulting in misleading results.
d. Repeat buying over a period of time usually cannot be assessed.
e. All of these are potential problems.
28. Which of the following statements about ASSESSOR is true?
a. It provides results faster and less expensively than a test market.
b. It offers a good deal of flexibility in the selection of the
marketing variables to be studied.
c. It assumes that preference data and purchase and repurchase
decisions are valid predictors of what would actually happen in the marketplace.
d. It is a laboratory test market method.
e. All of these are true.
29. Which of the following is not true of test marketing?
a. It improves a manager's knowledge of potential product sales.
b. It allows companies to pretest alternative marketing plans.
c. Companies may discover product faults that escaped notice in the
product development stage.
d. The results of test marketing may be distorted by improper methodology.
e. All of the above
30. Parker Foods has just developed a new product. What factors should
Parker Foods consider in deciding whether to use a test market for the product?
a. How disruptive actions by competitors might be to the completion
of a valid and reliable test.
b. How easily the new product could be copied by competitors.
c. How expensive a test market would be compared to immediate commercialization.
d. All of these.
e. None of the above.
31. Which of the following are possible measurements for evaluating
consumer product test markets?
a. Warehouse withdrawals
b. Store audits
c. Shipments
d. Trial purchase
e. All of these
32. Even though a product may be superior in the laboratory, the consumer may
not perceive it to be superior. What type of testing should be used to test this hypothesis
- virtual product testing
- use testing
- blind-use testing
- predicting trial purchase
- none of the above
33. ______________ can be used to generate a relationship between store sales and
a range of store, population, and competitor characteristics.
- Gravity model
- Multiple regression model
- Analogous location method
- Sales effort approach
- Field experiments
34. If a distributor offers a steep temporary price cut to retailers in order to sell excess
inventory, this type of promotion is called
- Cooperative promotion
- Trade promotion
- Promotion partnership
- Retailer promotion
- None of the above
35. Really new products are those that:
1. Create or expand a category
2. Require substantial learning
3. Raise broad issues
4. Create a need for infrastructure
a. 1 and 4 only
b. 2 and 3 only
c. All of the above
d. None of the above
36. A systematic effort to effect continuous quality improvements in the
processes, products, services, and human resources throughout the organization is
a. total quality management.
b. customer satisfaction research.
c. relationship marketing.
d. productivity improvement.
e. brand equity.
37. The process of managing complex changes in the organization with the aim of
improving quality is called
- Total Quality management
- Benchmarking
- Brand extension
- Brand control
- None of the above
38. The power of measurements is clearly visible in applications of
- Total Quality management
- Benchmarking
- Quality function deployment (QFD)
- Brand extension
- None of the above